Senedd Members have narrowly rejected a Welsh Government bid to reform the way Wales receives money from Westminster.

A motion calling for “fair funding for Wales”, put forward by Welsh Government Trefnydd Heledd Fychan, was beaten by 46 votes to 45 on 7 July.

The motion called on MSs to back the Welsh Government as it seeks changes to the Barnett Formula.

The Barnett Formula is used by the UK Treasury to calculate changes in the funding provided to the devolved administrations in Wales, Scotland, and Northern Ireland.

Though initially intended to be used as a temporary solution, the formula has remained in used since its introduction in 1979.

First Minister Rhun ap Iorwerth told the Siambr that fair funding for Wales is “more than just politics or political party rhetoric”.

He said: “It relates to Wales, which has the tools in its hands to build a better future for ourselves.

“The current fiscal arrangements in the United Kingdom aren't just unfair to Wales, they make economic failure more likely, and through reforming the current system we will ensure that the Welsh Government has the resources and the powers… to invest in public services, in infrastructure and in economic growth.”

Mr ap Iorwerth vowed to work “constructively” with the UK Government, noting Andy Burnham – the likely next Prime Minister – has experience of devolution from his time as Mayor of Manchester.

He urged Labour MSs to vote for his party’s motion, noting their manifesto committed to fair funding.

Taking an intervention shortly before closing his speech, the First Minister was questioned by Tory MS Andrew RT Davies on whether he had reached out to opposition parties to find a consensus.

Noting the “simplicity” of the Plaid Cymru motion, Mr ap Iorwerth said it was “worrying” that Mr Davies believes it is something consensus needs to be found on.

He said: “This is the fundamental of what we are here as a Senedd to do.”

“This Senedd has voted unanimously in favour of fairer funding for Wales before.

“It's my sincere hope that we can do so once more today, in the interest of the wellbeing and prosperity of our people.

“And this is bringing to the Senedd that pursuit of consensus right here in our national parliament today.”

Reform’s Welsh leader Dan Thomas described the debate as more about “Plaid’s unfunded manifesto” than securing fair funding.

Welsh Conservative leader Darren Millar described the Barnett Formula as “beyond its shelf life” and “out of date”.

He said there is a need for a new funding mechanism for the UK, but said the “big issue” with the fair funding debate is there is “always a risk” when asking for a review of the funding arrangements.

Mr ap Iorwerth said: “There's a straightforward question at the heart of this debate.

“Should we always seek to stand up for Wales and stand up for fairness? [...] Or do you believe Westminster is being generous to Wales and we should be grateful for what we get?”